State-Owned Oil Companies Raise Petrol Prices by Up to 2.54 Rupees per Liter

Strategic Insights -

Petrol prices in India are set to rise again, with state-owned oil companies Indian Oil Corp, Hindustan Petroleum Corporation Ltd, and Bharat Petroleum Corporation announcing hikes of up to Rs 2.54 per liter, effective from midnight tonight. This increase is the second in a month, following a previous hike of Rs 2.94-2.96 per liter in mid-December, the largest in six months. As a result, petrol prices at IOC outlets in Delhi will rise from Rs 55.87 per liter to Rs 58.37 per liter, while prices at HPCL and BPCL pumps will increase to Rs 58.39 per liter.

Key Takeaways:

  • Indian Oil Corp, Hindustan Petroleum Corporation Ltd, and Bharat Petroleum Corporation will raise petrol prices by Rs 2.50, Rs 2.54, and Rs 2.53 per liter, respectively.
  • The hikes will be effective from midnight tonight, with the new prices becoming applicable from tomorrow.
  • Petrol at IOC outlets in Delhi will cost Rs 58.37 per liter, while petrol at HPCL and BPCL pumps will cost Rs 58.39 per liter.
  • The three oil companies had previously raised petrol prices by Rs 2.94-2.96 per liter in mid-December, the largest hike in six months.
  • The companies are saddled with huge under-recoveries and have been allowed to decontrol petrol prices.
  • The government has taken the oil companies' under-recoveries into account before deciding to decontrol petrol prices.
  • The hike is a result of rising global crude oil prices.

Statistics:

  • Petrol price hike: Rs 2.50 (Indian Oil Corp), Rs 2.54 (Hindustan Petroleum Corporation Ltd), Rs 2.53 (Bharat Petroleum Corporation)
  • New price of petrol at IOC outlets in Delhi: Rs 58.37 per liter
  • New price of petrol at HPCL and BPCL pumps: Rs 58.39 per liter
  • Previous petrol price hike: Rs 2.94-2.96 per liter (mid-December)
  • Petrol price hike frequency: every few months
  • Government's under-recoveries: huge under-recoveries due to rising global crude oil prices

Sources:

  • The three state-owned oil companies: Indian Oil Corp, Hindustan Petroleum Corporation Ltd, and Bharat Petroleum Corporation
  • News agency: United News of India
  • Source article published in The Hindu